TOKYO: Japan’s manufacturing sector expanded at its slowest pace in seven months in October as output and new order growth eased, a business survey showed on Friday.
The flash S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) fell to 53.3 in October from 54.1 in September. A reading above 50.0 indicates expansion in activity, while below that level signals contraction. New orders of goods producers rose at the weakest pace since March, while new export business across Japan’s private sector increased at the softest rate in four months.
Manufacturers logged the weakest rise in output since March, while goods producers recorded the slowest increase in new orders since March, the survey showed.
Factory employment rose at a moderate pace in October. Manufacturers also increased purchasing activity, leading to the largest accumulation in stocks of purchases in almost four years. Service activity edged higher in October. The flash S&P Global Japan Services PMI Business Activity Index rose to 52.0 from 51.3, with the survey showing a stronger increase in business activity and faster sales growth.
At the broader economy level, the S&P Global Flash Japan Composite PMI Output Index was unchanged at 52.3, marking a 19th straight month of expansion in private sector activity. “The October flash PMI data indicated that overall business activity growth across Japan was unchanged from a month prior to remain weaker than the average for the year-to-date,” said Usamah Bhatti, economist at S&P Global Market Intelligence.